United States/U.S. Virgin Islands Retirement Plan Comparison Chart

The USVI uses a “mirror system” in which the U.S. Internal Revenue Code generally applies in the USVI. However, rules pertaining to estate, gift and excise taxes are not mirrored. This chart displays the areas where the two codes are different.

Subject Matter

IRC Section/ Revenue Procedure

U.S. Virgin Island Retirement Plans

Excise Tax on:

Prohibited tax shelter transaction

4965(a)(2)

Does not apply

Minimum funding deficiency

4971(a) and (b)

Does not apply

Failure to pay a liquidity shortfall

4971(f)

Does not apply

Failure to comply with a funding improvement or rehabilitation plan

4971(g)(2)

Does not apply

Failure to meet requirements for plans in endangered or critical status